Group 5: Audit Procedures

Correct answer B: The first is risk assessment; the second is a control test on the stated objectives.

Classify by purpose. Inspection can provide risk understanding or control-operation evidence; its label does not force one category.

Correct answer C: Terms may inform policy application, but transaction recording still needs relevant evidence.

Executed contracts can supply relevant policy information without validating every recorded transaction or assertion.

Correct answer C: It concerns observed performance, with possible observer effects and no automatic conclusion on other times.

Observation is useful but limited to its timing and possible behaviour effects. Other-period conclusions require appropriate evidence.

Correct answer C: Independent procedure execution is reperformance; adding columns is recalculation.

Different actions can coexist. Independent execution and mathematical checking are distinct techniques, whatever the document source.

Correct answer D: Request a direct written response about terms/modifications, rather than only the balance.

Confirmations can concern terms or absence of conditions. A zero balance does not answer all agreement questions.

Correct answer B: Evaluate history, reasons and ability, with other relevant evidence, rather than assume intent is conclusive.

History, rationale and ability can corroborate management intent where direct support is limited. They are not guarantees of future action.

Correct answer B: Investigate relevant terms and evidence, and modify/add procedures as needed.

Inquiry can reveal new or inconsistent information and change the work needed. Evaluate actual evidence and reporting implications.

Correct answer B: Preserve or examine relevant detail within its availability window, rather than assume the summary substitutes for it.

Retention and timing should address the actual information needed. A surviving summary may not meet the same objective as detailed records.

Correct answer D: Continued terms evidence does not automatically establish the new transactions' quantities, periods or amounts.

Evidence is purpose-specific. Establish continuing relevance and obtain current evidence for objectives not addressed by the old terms.

Correct answer D: Testing direction and the intended objective affect relevance.

Recorded items and information outside the list address different objectives. Investigate actual period/recording rather than infer every item is misstated.

Correct answer A: The difference is relevant information to investigate, not automatically an established omitted amount.

Supplier statements may be relevant for understatement; actual reasons, period and recording treatment must be investigated.

Correct answer D: Evidence relevant to one assertion is not a substitute for another assertion's evidence.

The source explains assertion-specific relevance; different sources/natures can contribute to the same or different assertions.

Correct answer A: That finding a mark alone settles the intended control-operation attributes.

Design control tests around conditions indicating performance/deviation. A visible mark may need context to address the actual required review.

Correct answer D: Consider the two objective-specific results separately; a control pass does not erase the amount difference.

Control-operation and substantive conditions are different. Evaluate the actual discrepancy without conflating the objectives.

Correct answer D: Substantive test of details, regardless of the mistaken title.

The objective is detecting material assertion misstatement. Titles do not change the procedure's actual purpose.

Correct answer A: Investigation of the inconsistent relationship using relevant information.

Analytical procedures encompass investigation of significant departures/inconsistent relationships, not cosmetic adjustment of predictions.

Correct answer C: The tested mathematics may be correct while input evidence remains unresolved.

Mathematical accuracy is a distinct objective. Evaluate appropriate input completeness/accuracy or other evidence separately.

Correct answer D: Checking a total is recalculation; full relevant independent execution is needed to describe reperformance.

Independent execution is different from accepting the client's output and checking one sum. State the actual scope of work.

Correct answer B: No; inquiry can be written and involve knowledgeable nonfinancial persons.

Inquiry spans formal written to informal oral responses and financial/nonfinancial persons. Form does not remove the need for evaluation.

Correct answer B: Written confirmation of the response does not automatically replace all other evidence for that broad conclusion.

The module contemplates written representations for some responses while retaining the ordinary insufficiency of inquiry alone for absence of material misstatement.

Correct answer A: Evaluate what the agreement supports and obtain relevant additional work where needed.

Inquiry evidence can be corroborative but broad operation/absence-of-error claims still require adequate relevant evidence.

Correct answer C: Controls tests where required/chosen and substantive detail/analytical procedures.

Further procedures have control and substantive purposes distinct from initial risk understanding; technique choice follows context.

Correct answer B: A technique can serve different purposes depending on context; physical format alone is not a category rule.

Inspection and other techniques may be used for different audit purposes in context. Describe the actual objective.

Correct answer A: Observation occurred first, and reperformance occurred through the separate independent execution.

Watching and independent execution are distinct techniques and may be combined. Evaluate each scope/result rather than force a single label.

Correct answer C: Presence supports existence but does not establish this entity's rights or the required reporting treatment.

Rights/obligations and reporting treatment need appropriate evidence. Neither presence nor legal title alone settles all objectives of this procedure case.

Correct answer D: The missing evidence is a gap to address with appropriate further work, not a procedure already completed.

Data availability affects planning, but unretrievable evidence cannot be invented. Evaluate remaining appropriate evidence and unresolved scope without predetermined reporting.

Correct answer C: It may address the stated terms objective but does not automatically validate all quantities.

Confirmation can be electronic and address non-balance terms. Conclusions remain linked to the response's actual scope.

Correct answer A: Consider current ability as well as favourable history and reasons, without a future guarantee.

Intent corroboration may use history, rationale and ability. One favourable factor does not settle another or guarantee future conduct.

Correct answer C: Operating effectiveness of the review is a control-test objective.

Controls are evaluated for preventing or detecting/correcting material assertion misstatements. Distinguish that objective from directly detecting misstatements in recorded amounts.

Correct answer A: Substantive procedures include tests of details and substantive analytical procedures.

Both categories can have a substantive objective. Analytical procedures can also serve other purposes depending on context, not universally one category.